German retailer group eyeing Dixons, Currys

One of Germany's biggest retailers, Metro, might be looking into acquiring DSGi, the parent company of Currys, Dixons and PCWorld in a transaction that could be worth around £1 billion.

Dixons is present in 13 countries and could add around £8 billion annually to Metro's subsidiary, Media Markt-Saturn, £13.5 billion turnover according to the Financial Times.

The move would mark the emergence of a new retailer group with the financial clout that could stem the growth of Tesco and Carrefour, two of Europe's biggest stores chains, in the non-grocery field.

Eckhard Cordes, the chief executive of the firm, said that they are considering a number of possibilities including an Initial Public Offer, cross-border acquisitions and exploring markets well outside Europe.

The Metro group, which is already present in UK through Makro stores, has a foothold in 31 countries and has a revenue comparable to Tesco at £51 billion; unlike the British retailer though, Metro considers electronics and technology as being one of its core offerings, rather than an add-on.